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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Financial Services Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$202.1 Mil.
China Financial Services Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$1,693.3 Mil. Therefore, China Financial Services Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 11.94%.
China Financial Services Holdings (HKSE:00605) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
China Financial Services Holdings ROA % Related Terms
China Financial Services Holdings ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Credit Services subindustry, China Financial Services Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Financial Services Holdings ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Financial Services Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where China Financial Services Holdings's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
China Financial Services Holdings (HKSE:00605) has a ROA % of 11.94% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Financial Services Holdings and its competitors. This is 6924% above median its historical median of 0.17. According to the industry distribution chart, China Financial Services Holdings ranks #138 out of 548 companies in the Credit Services industry, placing it in the top 25.2%.
Is China Financial Services Holdings' ROA % too high?
China Financial Services Holdings' current ROA % of 11.94% is 6924% above median its 10-year median of 0.17. The Credit Services industry median ROA % is 2.00. China Financial Services Holdings' value of 11.94% is 497% above this industry median. Based on the distribution chart, China Financial Services Holdings ranks #138 out of 548 companies in the Credit Services industry, which is above the industry midpoint. Overall, China Financial Services Holdings has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Financial Services Holdings' ROA % compare to V and MA?
According to the Credit Services industry distribution chart, China Financial Services Holdings ranks #138 out of 548 companies for ROA %. This puts China Financial Services Holdings in the upper half of its industry. The industry median ROA % is 2.00. China Financial Services Holdings' value of 11.94% is 497% above this benchmark. While the company's 10-year median is 0.17 vs. the industry median of 2.00, China Financial Services Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Credit Services company?
The median ROA % among Credit Services companies is 2.00, based on 548 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Financial Services Holdings's current ROA % of 11.94% is 497% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Financial Services Holdings and its competitors. For the Credit Services industry, the median ROA % is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Financial Services Holdings's current ROA % is 11.94%, which is 6924% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Financial Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Financial Services Holdings (HKSE:00605) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.47, compared to a current price of HK$0.86 — trading 81.9% above its estimated fair value. The current ROA % is 11.94%, which is 6924% above median its 10-year median of 0.17 and 497% above the Credit Services industry median of 2.00. China Financial Services Holdings' overall GF Score™ is 42/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For China Financial Services Holdings (HKSE:00605), the current ROA % is 11.94% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Financial Services Holdings (HKSE:00605) Overvalued in 2026?
Based on GuruFocus' analysis, China Financial Services Holdings stock appears to be overvalued.
The current stock price of HK$0.86 is trading 81.9% above its estimated GF Value™ of HK$0.47.
GuruFocus considers China Financial Services Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00605:
ROA %: 11.94% (6924% above median its 10-year median of 0.17)
GF Value™: HK$0.47 vs. price of HK$0.86 (81.9% above fair value)
Industry Position: 497% above the Credit Services median (#138 of 548)
No single metric tells the full story. See the HKSE:00605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Financial Services Holdings Ltd is engaged in the provision of financing services in four operating regions, namely Hong Kong, Shenzhen, Chengdu, and Beijing. The clients are individual customers and corporate customers located in Hong Kong and the PRC. The group identifies potential customers through in-house sales teams, referrals, and networks with commercial banks, property developers, and small-to-medium-sized enterprises. The company's reportable segment are; financing services, and education service. Geographically, revenue is derived from the People's Republic of China.
42GF Score
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